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January 13, 2017
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. www.ichigo-green.co.jp/en/
Ichigo Green Infrastructure Investment Corporation Ichigo Investment Advisors Co., Ltd.
August 9, 2017
Ichigo Green(9282)
FY17/6 Corporate Presentation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo Preserves and Improves Real Estate
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Contents
Ichigo Green Overview‒ Mission & Deliverables to Shareholders‒ Solar Power Plant Portfolio Details‒ Solar Power Plant Map
FY17/6 Results‒ FY17/6 Highlights‒ FY17/6 Earnings‒ Solar Power Generation‒ Power Generation by Individual Power Plant‒ Loan Details‒ July 2017 Acquisitions Drive Further Earnings Growth ‒ FY18/6 Earnings Forecast ‒ FY18/6 Power Generation Forecast
Maximize Shareholder Value‒ Ichigo Power Plant Performance Guarantee‒ Customized Solar Power Plant Builds‒ Fully-Networked Panel-Level Production Monitoring‒ Japan’s First Ten-Year Earnings Forecast‒ World-Class Disclosure: Real-Time Power Production Data
Growth Strategy Leveraging Ichigo’s Strengths
‒ Ichigo Green’s Sponsor: Ichigo (2337)‒ Synergies Between Ichigo Green and Ichigo‒ Ichigo & Ichigo Green Solar Power Plant
Portfolio
Solar Power Plant Data‒ Solar Power Plant Portfolio ‒ Individual Solar Power Plant Details
Appendix
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo Green Overview
5
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Mission & Deliverables to Shareholders
6
Mission: To maximize shareholder value via a renewable energy portfolio that provides both return stability and growth potential, along with offering investors an opportunity to invest in Japan’s rapidly expanding green infrastructure asset class
No. of Shares Offered at IPO
51,483 shares (including underwriter allotment)
Issue Price JPY 100,000 per share
Offering Amount JPY 4,954 million
TSE Listing December 1, 2016
Ichigo Green’s Deliverables to its Shareholders
Stable & Growing EPS
Maximize Shareholder
Value
Leverage Sponsor Ichigo’s
Strengths
・ Invests in solar power plants with 20-year FIT (Feed-In Tariff) power sale contracts・ Long-term and stable operation of robust plants with a comprehensive real-time monitoring system・ Geographically diverse power plant portfolio・ Earnings stability backed by performance guarantees from power plant operator
・ Because solar power plants are depreciable, Ichigo Green has substantial non-cash depreciation expenses that lower its accounting-based EPS. These additional cash earnings are deployed to pay a higher dividend.
・ Power plant operator is Ichigo ECO Energy, with a strong track-record developing and operating 32 solar power plants nationwide.
・ Asset management company has extensive experience managing Ichigo Office REIT (8975) and Ichigo Hotel REIT (3463).
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Hokkaido30.2%
Kanto4.3%
Chubu4.6%
Chugoku12.8%
Shikoku13.9%
Kyushu4.5%
Okinawa29.8%
>3 yearsin operation
20.2%
2-3 yearsin operation
62.5%
1-2 years inoperation
17.3%
Solar Power Plant Portfolio Details
7
By Region By Years in Operation
As of August 9, 2017
JPY 11.4B
Acquisition PriceNo. of Power Plants
15
Average FIT
JPY 38.7
CO2 Reduction
22,850 Tons
29.43MW
Panel Output
Annual Power Generation
10,638 Households* Annualized CO2 reduction relative to fossil fuels based on each plant’s forecast power generation. Annualized number of households based on each plant’s projected forecast generation assuming monthly power consumption per household is 271.2KWh. 13 power plants at December 2016 IPO, plus 2 acquisitions in July 2017. See page 15 for July acquisition details.
By FIT
JPY 4073.1%
JPY 3622.3%
JPY 324.6%
* Graph data are based on acquisition price.
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 8
Ichigo Kiryu Okuzawa1.33MW
Ichigo Toyokoro1.02MW
Ichigo Miyakonojo Yasuhisacho1.44MW
Ichigo Toyokawa Mitocho Sawakihama1.80MW
Ichigo Motomombetsu1.40MW
Ichigo Muroran Hatchodaira1.24MW
Ichigo Iyo Nakayamacho Izubuchi1.23MW
Ichigo Nakashibetsu Midorigaoka1.93MW
Ichigo Abira Toasa1.16MW
Ichigo Engaru Kiyokawa1.12MW
Ichigo Engaru Higashimachi1.24MW
Ichigo Takamatsu Kokubunjicho Nii2.43MW
Solar Power Plant Map
Geographically Diversified
15 Plants (29MW)
Ichigo Nago Futami8.44MW
Ichigo Yamaguchi Aionishi1.24MW
Ichigo Yamaguchi Sayama2.35MW
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
FY17/6 Results
9
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
FY17/6 Highlights
10
Major Actions
EPS
DPS
Achievements Details
FFO
Avg. LoanInterest Rate
LTV
• TSE Listing on Dec. 1, 2016• Acquired 13 solar plants (JPY 10B)• Financed with new loans• Announced first-ever ten-year
earnings forecast by a Japanese company
• Acquired 2 additional solar plants
• Shares outstanding: 51,483 shares• Geographically diverse portfolio• Swaps on 10-year loans lock-in low interest rates• Ten-year earnings forecast possible due to long-term earnings
visibility from 20-year Feed-In Tariff (FIT) power sale contracts and performance guarantees from solar power plant operator
• 2 new solar plant acquisitions increase EPS +17.9% from FY18/6 through FY26/6
JPY 1,831 • +JPY 610 (+50.0%) vs. JPY 1,221 initial forecast
JPY 4,278 • +JPY 618 (+16.9%) vs. JPY 3,660 initial forecast
JPY 8,610 • Cash earnings substantially higher than EPS and DPS due to accelerated depreciation expenses
0.70% • Average loan term: 9.0 years
57.4% • 20-year FIT power contracts support high creditworthiness
* EPS calculated based on the number of shares outstanding as of FY17/6 end.FFO (Funds from Operations) = (Net Income + Depreciation + Amortization of Expenses Related to the Establishment of Ichigo Green + Amortization of Share-Issuance Expenses + Amortization of Start-up Expenses + Loss on Disposal of Fixed Assets + Liability for Asset Retirement Obligation +/- Losses/Gains on Sales +/- Extraordinary Gains/Losses) / Number of Shares Outstanding Initial forecast announced on May 26, 2017
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
FY17/6 (7 Months)(May 26, 2017 Forecast)
FY17/6 (7 Months)(Actual) Difference vs. Forecast
Operating Revenue 545 566 +21 103.9%
Operating Expenses 418 407 -11 –
(Depreciation Expenses) 327 326 -1 –
Operating Profit 127 158 +31 124.7%
Recurring Profit 65 97 +32 148.9%
Net Income 62 94 +32 150.0%
DPS JPY 3,660 JPY 4,278 +618 116.9%
(excluding Dividend in Excess of Earnings) JPY 1,120 JPY 1,738 +618 155.2% (Dividend in Excess of Earnings) JPY 2,540 JPY 2,540 – –
Number of Power Plants 13 13 – –
Above-Forecast Power Generation Drove Higher Earnings & Dividend JPY 1,738 DPS (+JPY 618, +55.2% vs. Forecast)
FY17/6 Earnings
11
(JPY million)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
59
69
80
112 117
124
110
0
30
60
90
120
150
Jul2016
Aug Sep Oct Nov Dec Jan2017
Feb Mar Apr May Jun0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000Forecast Power Generation
Actual Power Generaiton
Power Production Revenue
Solar Power Generation
12
+2% vs. ForecastFY17/6 Power Generation and Power Production Revenue (13 Power Plants)
* Forecast power generation is a third-party, 50% probability mean annual production forecast (P50 forecast) that serves as the base forecast for each solar power plant’s operating plan. Power production revenue is total power sales to power purchasers (electric power utilities). Power production is also seasonal, and is lower in June due to Japan’s rainy season and in September through February due to fewer productive daylight hours during autumn/winter.
TSE IPO(Dec 1, 2016)
(Reference)
(kWh) (JPY million)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Solar Power PlantForecast PowerGeneration (A)
(kWh)
Actual PowerGeneration (B)
(kWh)
Difference(B) - (A)(kWh)
Actual PowerProduction Revenue
(JPY thousand)
OperatingRevenue
(JPY thousand)
Ichigo Kiryu Okuzawa 942,498 1,114,289 +171,791 43,624 36,329
Ichigo Motomombetsu 909,370 883,470 -25,900 34,786 28,151
Ichigo Muroran Hatchodaira 853,548 883,947 +30,399 34,956 28,939
Ichigo Engaru Kiyokawa 723,286 681,012 -42,274 27,008 22,057
Ichigo Iyo Nakayamacho Izubuchi 801,458 826,594 +25,136 33,183 28,146
Ichigo Nakashibetsu Midorigaoka 1,397,559 1,400,915 +3,356 55,116 47,629
Ichigo Abira Toasa 809,946 806,727 -3,219 32,319 27,050
Ichigo Toyokoro 800,475 811,757 +11,282 32,358 27,243
Ichigo Nago Futami 5,109,062 5,084,593 -24,469 201,775 173,505
Ichigo Engaru Higashimachi 788,943 712,876 -76,067 28,097 23,714
Ichigo Takamatsu Kokubunjicho Nii 1,780,158 1,856,683 +76,525 66,727 61,415
Ichigo Miyakonojo Yasuhisacho 992,300 1,042,908 +50,608 36,742 29,569
Ichigo Toyokawa Mitocho Sawakihama 1,290,695 1,426,625 +135,930 45,400 32,871
Total 17,199,300 17,532,400 +333,100 672,099 566,623
Power Generation by Individual Power Plant
Geographically Diverse Portfolio Contributes to Earnings Stability
* Operating Revenue = Power Production Revenue – Operating Expenses
13
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
FY17/6(Actual) FY18/6 FY19/6 FY20/6 FY21/6 FY22/6 FY23/6 FY24/6 FY25/6 FY26/6
57.4% 58.6% 58.2% 57.8% 57.1% 56.5% 55.6% 54.7% 53.7% 52.4%
Loan Lender Amount(JPY million)
Interest Rate(%) Fixed / Floating Borrowing Date Maturity Loan Term
ConsumptionTax Loan I
Mizuho BankSMBC 760 0.230 Floating Dec 1, 2016 Nov 30, 2017 1 year
Term Loan I Mizuho BankSMBC 6,098 0.760 Fixed Dec 1, 2016 Nov 30, 2017 10 years
Term Loan II Mizuho Bank 475 0.815 Fixed Jul 3, 2017 Jun 30, 2027 10 years
Term Loan III Yamaguchi Bank 1,000 0.815 Fixed Jul 3, 2017 Jun 30, 2027 10 years
Total 8,333 Average 0.721%
Loan Details
14
− Locked-In Low Long-Term Borrowing Costs via Interest Rate Swaps− Short-Term Financing of Consumption Tax Receivable
* Consumption tax loan is a loan to be repaid when consumption taxes paid on the acquisition of solar power plants are refunded. Interest rates for the term loans are fixed via interest rate swaps.
As of August 9, 2017
LTV Forecast
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
July 2017 Acquisitions Drive Further Earnings Growth
15
Further Diversify Portfolio by Adding Plants in Japan’s Chugoku Region Ichigo Yamaguchi Aionishi ECO Power Plant (Yamaguchi Prefecture)
— Panel Output: 1.24MW, FIT: JPY 40 Ichigo Yamaguchi Sayama ECO Power Plant (Yamaguchi Prefecture)
— Panel Output: 2.35MW, FIT: JPY 36
Increase EPS by Funding Acquisitions with Bank Loans and Cash-on-Hand Ten-Year Earnings and Dividend Forecast Upward Revision
— EPS: JPY 2,840 → JPY 3,348 (weighted-average +17.9% )— DPS (including Dividend in Excess of Earnings):
JPY 7,256 → JPY 7,573 (weighted-average +4.4%)
Ichigo Yamaguchi Aionishi ECO Power Plant (1.24MW) Ichigo Yamaguchi Sayama ECO Power Plant (2.35MW)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
FY18/6 Earnings Forecast
16
(JPY million)
+24.8% Net Income Growth vs. Initial Forecast due to 2 Accretive Power Plant Acquisitions
* FY18/6 Initial Forecast (A) is from May 26, 2017 release “Ten-Year Earnings and Dividend Forecast Revision” FY18/6 Revised Forecast (B) is from June 28, 2017 release “Ten-Year Earnings and Dividend Forecast Revision”
FY17/6 (7 Months)(Actual)
FY18/6 (12 Months)(Initial Forecast)
(A)
FY18/6 (12 Months)(Revised Forecast)
(B)
Difference(B) - (A) Change
Operating Revenue 566 963 1,095 +132 +13.7%
Operating Expenses 407 747 832 +85 +11.4%
(Depreciation Expenses) 326 562 635 +73 +13.0%
Operating Profit 158 216 262 +46 +21.3%
Recurring Profit 97 118 147 +29 +24.6%
Net Income 94 117 146 +29 +24.8%
DPS JPY 4,278 JPY 6,630 JPY 7,180 +JPY 550 +8.3%
(excluding Dividend in Excess of Earnings) JPY 1,738 JPY 2,270 JPY 2,820 +JPY 550 +24.2%
(Dividend in Excess of Earnings) JPY 2,540 JPY 4,360 JPY 4,360 – –
Number of Power Plants 13 13 15 +2 +15.4%
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000FY17/6Actual Power Generation (13 Power Plants)FY18/6Forecast Power Generation (15 Power Plants)
FY18/6 Power Generation Forecast
17
− 15 Solar Power Plants− Forecast (P50): +1.66 million kWh YOY
FY17/6 Actual: 32.95 million kWhFY18/6 Forecast: 34.62 million kWh (+1.66 million kWh YOY)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Maximize Shareholder Value
18
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Further Supports and Solidifies Long-Term Returns Power generation Operating Revenue fully distributed to Ichigo Green
shareholders Above-forecast Operating Revenue also fully distributed
— Guaranteed base revenue (FIT electricity sales revenue) from Ichigo (2337) based on the annual P85 production forecast regardless of actual power generation
— Power plants carry P&C, earthquake, and operating performance insurance
Ichigo Power Plant Performance Guarantee
19
Operator-Guaranteed Base Revenue
Ichigo-Guaranteed Base Revenue
FIT power production revenue (less operating expenses) based on annual P85 production forecast
Operating Expenses
AdditionalRevenue
Incremental operating expenses
Additional Revenue (>P85 forecast) fully distributed as dividend
Annual P85Production Forecast
Annual P50 Production Forecast(basis for Ichigo Green earnings forecast)
* Earthquake insurance only purchased for power plants where third-party assessment concludes earthquake risk warrants
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Customized Solar Power Plant Builds
20
Optimized to Local Meteorologies to Maximize Power Production Efficiency− Snow (Hokkaido): High mounting racks and 30 degree panel inclination to
avoid and displace snow coverage (vs. 10 degree in other areas)− High winds (Kagawa): Mounting racks closely fit to site inclines− Typhoons(Okinawa): Mounting racks with extra load capacities capable of
withstanding wind velocities of 60m per second
Third-Party Certification− Ichigo Kiryu Okuzawa ECO Power Plant received a domestic and
international certification from third-party inspection agency, TUV Rheinland, making it the second solar plant to be certified in Japan
− Thorough on-site plant inspections throughout construction and operation
Ichigo Engaru Higashimachi ECO Power Plant (Hokkaido)
Ichigo Takamatsu Kokubunjicho Nii ECO Power Plant (Kagawa)
Ichigo Nago Futami ECO Power Plant (Okinawa)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Fully-Networked Panel-Level Production Monitoring
• Real‐time monitoring• Immediate response capability• Real‐time analysis of production data for early detection of malfunctions
Real-Time Monitoring System Immediately Detects Any Failures at the Panel Level
21
Monitoring & Analysis
Inverter
Comprehensive Monitoring System Schematic
Comprehensive Monitoring System
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Japan’s First Ten-Year Earnings Forecast
Long-Term Earnings Stability Enables 10-Year Earnings Forecast‒ Fixed 20-year FIT power sales contracts‒ Power plant base performance guaranteed by operator‒ Accelerated depreciation expenses reduce accounting-based EPS – cash
earnings much higher, with FFO > full DPS by 2X and EPS by 4X-5X
22
* Ichigo Green’s actual operating timeframe during FY17/6 was from December 1, 2016, the day it acquired its first power plants, to June 30, 2017 (7 months).
Ten-Year Dividend & FFO Forecast (Upward Revision on June 28, 2017)
DPSFFO
Dividend in Excess of Earnings
Dividend per Share (excluding Dividend in Excess of Earnings)
(Actual)*
2,540 4,360 4,370 4,380 4,390 4,390 4,400 4,410 4,020 3,650
1,738
2,820 2,750 2,780 3,250 3,500 3,790 3,720 3,750
3,430
June2017
June2018
June2019
June2020
June2021
June2022
June2023
June2024
June2025
June2026
4,278
7,180 7,120 7,1607,640 7,890 8,190 8,130 7,770
7,080
8,610
15,877 15,822 15,63215,965 16,005 16,292 16,272
16,50616,423
(JPY)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
World-Class Disclosure: Real-Time Power Production Data
23
Real-Time Individual Power Plant Data and Live Camera Video Feeds
Live Camera
www.ichigo-green.co.jp/en/Ichigo Green HP
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Growth Strategy Leveraging Sponsor Strengths
24
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo Green’s Sponsor: Ichigo (2337)
Ichigo Investment Advisors Co., Ltd.
Ichigo Owners Co., Ltd.
Ichigo (TSE First Section 2337)
Asset manager of Ichigo Office REIT (8975), Ichigo Hotel REIT (3463), and Ichigo Green (9282)
Real estate value-add
Clean energy business focusing on utility-scale solar power production, making purposeful use of unused land nationwide
Operates Miyako City, a large shopping mall in Miyazaki Prefecture
Real estate owner services
Cross-border M&A advisory
Operates Matsudo Nanbu wholesale market in Chiba Prefecture
Real estate business centered on Fukuoka in Kyushu region
Ichigo Estate Co., Ltd.
Ichigo Global Capital Co., Ltd.
Ichigo ECO Energy Co., Ltd.
Ichigo Real Estate Services Fukuoka Co., Ltd.
Ichigo Marché Co., Ltd.
Miyako City Co., Ltd.
The word “Ichigo” comes from the ancient Japanese proverb, Ichigo Ichie, literally meaning “One lifetime, one encounter.” The phrase was first used by a 16th century master of the tea ceremony, Sen no Rikyu. He called upon his disciples to give total focus and sincerity to each act of the tea ceremony for every guest, because that particular moment will only exist once and must be fully lived and realized. Ichigo embraces the Ichigo Ichie philosophy of sincerity and service, and works to build strong long-term relationships to support the success of our clients, shareholders, and all stakeholders.
Core Businesses: Asset Management, Real Estate Value-Add, Clean Energy‒ Manages Ichigo Green, Ichigo Office REIT (8975) ,and Ichigo Hotel REIT (3463) ‒ TSE First Section, JPX-Nikkei 400 Member‒ Deeply committed to CSR and Sustainability – Japan’s first zero-carbon listed real
estate company
Ichigo Preserves and Improves Real Estate
25
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Third-Party
Investors
Ichigo’s Value-Add Business Model
Green Infrastructure
Ichigo Green(9282)
Solar Plants
Buy
SellOffice
Ichigo Office REIT (8975)
Hotel
Ichigo Hotel REIT (3463)
Value-Add不動産
Sell
Buy
Real Estate
Real Estate
Preserve &Improve
26
− Ichigo-provided solar and wind power plant pipeline− Power plant technical capabilities backed by Ichigo ECO Energy’s
nationwide solar power operating track record− Ichigo Investment Advisor’s asset management capabilities
Synergies Between Ichigo Green and Ichigo
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo & Ichigo Green Solar Power Plant Portfolio
27
Ichigo Engaru Kiyokawa (1.12MW)
Ichigo Motomombetsu (1.40MW)
Ichigo Nakashibetsu Midorigaoka (1.93MW)
Ichigo Betsukai Kawakamicho (0.88MW)
Ichigo Abira Toasa (1.16MW)
Ichigo Muroran Hatchodaira (1.24MW)
Ichigo Tokushima Higashi-Okinosu (2.52MW)
Ichigo Iyo Nakayamacho Izubuchi (1.23MW)
Ichigo Miyakonojo Takazakicho Tsumagirishima (2.64MW)
Online in 2021/11
Ichigo Yubetsu Barou (0.80MW)
Ichigo Engaru Higashimachi (1.24MW)
Ichigo Akkeshi Shirahama (0.80MW)
Ichigo Takamatsu Kokubunjicho Nii (2.43MW)
Total Operating and In-DevelopmentIchigo & Ichigo Green Solar Power Plants43 Plants (128MW)Currently Operating32 Plants (54MW)
Serving Local Communities and the Environment
Ichigo Hamanaka Bokujo Tsurunokotai(2.31MW)
Ichigo Hamanaka Bokujo Kajibayashi(2.31MW)
Ichigo Toyokawa Mitocho Sawakihama(1.80MW)
Ichigo Kasaoka Takumicho (1.11MW)
Ichigo Nago Futami (8.44MW)
Ichigo Minakami Aramaki(10.26MW) Online in 2019/4
Ichigo Toyokoro Sasadamachi (0.60MW)
Ichigo Toyokoro (1.02MW)Ichigo Showamura Ogose
(43.34MW) Online in 2018/1
Ichigo Kiryu Okuzawa (1.33MW)
Ichigo Toki Oroshicho(1.39MW)
Ichigo Toride Shimotakai Minami (0.54MW)
Ichigo Toride Shimotakai Kita (1.03MW)
Ichigo Higashi-Hiroshima Saijocho Taguchi (2.72MW)
Ichigo Yonago Izumi (2.61MW)
Ichigo Fuchu Jogecho Yano (0.99MW)
Ichigo Maebashi Naegashima (0.67MW)
Ichigo Sera Aomizu(2.87MW) Online in 2017/8
Ichigo Sera Tsukuchi(2.54MW)
Ichigo Kijo Takajo(0.89MW)
Ichigo Miyakonojo Yasuhisacho (1.44MW)
Ichigo (2337)Ichigo Green
Ichigo Itoshima Ihara(1.29MW) Online in 2018/7
Ichigo Kure Yasuuracho Nakahata(2.65MW) Online in 2018/1
Ichigo Yamaguchi Aionishi (1.24MW)
Ichigo Yamaguchi Sayama (2.35MW )
Ichigo Memuro Nishishikari(1.32MW) Online in 2017/12
Ichigo Tsu(2.94MW) Online in 2018/2
Ichigo Hitachi Omiya (2.96MW) Online in 2019/11
Ichigo Toki Tsurusatocho Kakino (1.26MW) Online in 2018/3
Ichigo Kasaoka Iwanoike(2.61MW) Online in 2018/1
(As of August 9, 2017)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Solar Power Plant Data
28
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
No. Solar Power Plant Location Book Value1 Appraisal Value2
(JPY million)
PanelOutput3
(MW)
FIT4
(JPY)
PortfolioWeight5
(%)E-01 Ichigo Kiryu Okuzawa Kiryu City, Gunma 483 508 1.33 40 4.25
E-02 Ichigo Motomombetsu Mombetsu City, Hokkaido 490 513 1.40 40 4.31
E-03 Ichigo Muroran Hatchodaira Muroran City, Hokkaido 462 486 1.24 40 4.06
E-04 Ichigo Engaru Kiyokawa Mombetsu County, Hokkaido 395 400 1.12 40 3.47
E-05 Ichigo Iyo Nakayamacho Izubuchi Iyo City, Ehime 467 494 1.23 40 4.11
E-06 Ichigo Nakashibetsu Midorigaoka Shibetsu County, Hokkaido 760 764 1.93 40 6.68
E-07 Ichigo Abira Toasa Yufutsu County, Hokkaido 437 450 1.16 40 3.84
E-08 Ichigo Toyokoro Nakagawa County, Hokkaido 430 449 1.02 40 3.78
E-09 Ichigo Nago Futami Nago City, Okinawa 3,368 3,688 8.44 40 29.62
E-10 Ichigo Engaru Higashimachi Mombetsu County, Hokkaido 460 466 1.24 40 4.05
E-11 Ichigo Takamatsu Kokubunjicho Nii Takamatsu City, Kagawa 1,111 1,136 2.43 36 9.77
E-12 Ichigo Miyakonojo Yasuhisacho Miyakonojo City, Miyazaki 513 545 1.44 36 4.51
E-13 Ichigo Toyokawa Mitocho Sawakihama Toyokawa City, Aichi 519 499 1.80 32 4.56
Total (as of June 30, 2017) 9,901 10,400 25.78 38.9 87.08
E-14 Ichigo Yamaguchi Aionishi Yamaguchi City, Yamaguchi 544 553 1.24 40 4.78
E-15 Ichigo Yamaguchi Sayama Yamaguchi City, Yamaguchi 925 917 2.35 36 8.14
Total (as of August 9, 2017) 11,370 11,870 29.43 38.7 100.00
Solar Power Plant Portfolio
29
1 Book Value for E-14 and E-15 are acquisition price excluding incidental expenses. 2 Appraisal Value is from PwC Sustainability LLC’s Valuation Report using values as of June 30, 2017 (E-01 through E-13) and May 31, 2017 (E-14 and E-15). The
values are medians of the appraisal value ranges shown in the Report.3 Panel Output is derived by multiplying the maximum output of a single solar panel by the total number of panels4 FIT (Feed-In Tariff) is the purchase price agreed in the respective Power Purchase Agreements for each solar power plant5 Portfolio Weight is based on fiscal year-end book value
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
E-01 Ichigo Kiryu OkuzawaLocation Gunma
Area 27,588m2
Operation Start Date Sep 30, 2013
Panel Output 1.33MW
FIT JPY 40
FIT Period Sep 29, 2033
Power Purchaser
TEPCO EnergyPartner
Individual Solar Power Plant Details
30
E-02 Ichigo MotomombetsuLocation Hokkaido
Area 48,946m2
Operation Start Date Feb 3, 2014
Panel Output 1.40MW
FIT JPY 40
FIT Period Feb 2, 2034
Power Purchaser Hokkaido Electric
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Individual Solar Power Plant Details
31
E-03 Ichigo Muroran Hatchodaira
E-04 Ichigo Engaru Kiyokawa
Location Hokkaido
Area 35,801m2
OperationStart Date Mar 3, 2014
Panel Output 1.24MW
FIT JPY 40
FIT Period Mar 2, 2034
PowerPurchaser Hokkaido Electric
Location Hokkaido
Area 27,164m2
OperationStart Date Mar 4, 2014
Panel Output 1.12MW
FIT JPY 40
FIT Period Mar 3, 2034
PowerPurchaser Hokkaido Electric
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
0
40,000
80,000
120,000
160,000
200,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 32
E-05 Ichigo Iyo Nakayamacho Izubuchi
E-06 Ichigo Nakashibetsu Midorigaoka
Location Ehime
Area 26,260m2
OperationStart Date Apr 2, 2014
Panel Output 1.23MW
FIT JPY 40
FIT Period Apr 1, 2034
PowerPurchaser Shikoku Electric
Location Hokkaido
Area 54,870m2
OperationStart Date Nov 4, 2014
Panel Output 1.93MW
FIT JPY 40
FIT Period Nov 3, 2034
PowerPurchaser Hokkaido Electric
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
0
50,000
100,000
150,000
200,000
250,000
300,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Individual Solar Power Plant Details
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Individual Solar Power Plant Details
33
E-07 Ichigo Abira Toasa
E-08 Ichigo Toyokoro
Location Hokkaido
Area 29,730m2
OperationStart Date Dec 2, 2014
Panel Output 1.16MW
FIT JPY 40
FIT Period Dec 1, 2034
PowerPurchaser Hokkaido Electric
Location Hokkaido
Area 29,004m2
OperationStart Date Dec 4, 2014
Panel Output 1.02MW
FIT JPY 40
FIT Period Dec 3, 2034
PowerPurchaser Hokkaido Electric
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 34
E-09 Ichigo Nago Futami
E-10 Ichigo Engaru Higashimachi
Location Okinawa
Area 146,294m2
OperationStart Date Feb 2, 2015
Panel Output 8.44MW
FIT JPY 40
FIT Period Feb 1, 2035
PowerPurchaser Okinawa Electric
Location Hokkaido
Area 46,329m2
OperationStart Date Feb 3, 2015
Panel Output 1.24MW
FIT JPY 40
FIT Period Feb 2, 2035
PowerPurchaser Hokkaido Electric
0
200,000
400,000
600,000
800,000
1,000,000
Dec 2016 Mar 2017 Jun 2017
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Individual Solar Power Plant Details
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Individual Solar Power Plant Details
35
E-11 Ichigo Takamatsu Kokubunjicho Nii
E-12 Ichigo Miyakonojo Yasuhisacho
Location Kagawa
Area 79,340m2
OperationStart Date Jun 2, 2015
Panel Output 2.43MW
FIT JPY 36
FIT Period Jun 1, 2035
PowerPurchaser Shikoku Electric
Location Miyazaki
Area 94,165m2
OperationStart Date Jul 8, 2015
Panel Output 1.44MW
FIT JPY 36
FIT Period Jul 7, 2035
PowerPurchaser Kyushu Electric
0
100,000
200,000
300,000
400,000
Dec 2016 Mar 2017 Jun 2017
0
50,000
100,000
150,000
200,000
Dec 2016 Mar 2017 Jun 2017
(kWh)
(kWh)
Forecast Power GenerationActual Power Generation
Forecast Power GenerationActual Power Generation
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Individual Solar Power Plant Details
36
E-13 Ichigo Toyokawa Mitocho SawakihamaLocation Aichi
Area 19,393m2
OperationStart Date Sep 16, 2015
Panel Output 1.80MW
FIT JPY 32
FIT Period Sep 15, 2035
PowerPurchaser Chubu Electric 0
100,000
200,000
300,000
Dec 2016 Mar 2017 Jun 2017
(kWh)Forecast Power GenerationActual Power Generation
E-14 Ichigo Yamaguchi Aionishi E-15 Ichigo Yamaguchi SayamaAcquired July 2017 Acquired July 2017
Location Yamaguchi
Area 19,815m2
OperationStart Date Dec 7, 2015
Panel Output 1.24MW
FIT JPY 40
FIT Period Dec 6, 2035
PowerPurchaser Chugoku Electric
Location Yamaguchi
Area 43,621m2
OperationStart Date Apr 6, 2016
Panel Output 2.35MW
FIT JPY 36
FIT Period Apr 5, 2036
PowerPurchaser Chugoku Electric
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Appendix
37
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved. 38
Reference: Japan’s Feed-In Tariff (FIT)
What is a FIT?‒ A policy mechanism designed to accelerate the deployment of renewable
energy such as solar and wind, guaranteeing a long-term sale price for electricity (in Japan, 20 years) at a fixed price.
‒ Japan’s FIT is updated every year.
Pre-consumption tax FIT for power plants with output of >10kWSource: METI, Agency for Natural Resources and Energy
* FIT for >2MW non-residential solar power production determined via auction process
Contract Date FIT FITPeriod Contract Date FIT FIT
Period
FY2012 JPY 40 20 years FY2015 (7/1 - 3/31) JPY 27 20 years
FY2013 JPY 36 20 years FY2016 JPY 24 20 years
FY2014 JPY 32 20 years FY2017 JPY 21* 20 years
FY2015 (4/1 - 6/30) JPY 29 20 years
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
No. ofShares Held Share
1 Ichigo Trust Pte. Ltd. 7,897 15.3%
2 Ichigo Inc. 3,000 5.8%
3 MACQUARIE BANK LIMITED-MBL LONDON BRANCH 2,261 4.4%
4 CGML-LONDON EQUITY 2,102 4.1%
5 GOLDMAN, SACHS & CO. REG 827 1.6%
6 Japan Trustee Services Bank, Ltd., Trust Account 760 1.5%
7 Individual Shareholder 500 1.0%
8 Otani Asset Management, K.K. 354 0.7%
9 Individual Shareholder 342 0.7%
10 Fujidempa Kogyo Co., Ltd. 338 0.7%
18,381 35.7%
Name
Total
Domestic Individuals 29,731
Financial Institutions2,120
Other Domestic Corporations
5,628
Foreign Corporations & Individuals
14,004
Domestic Individuals
3,796
Financial Institutions
13
Other Domestic Corporations
72
Foreign Corporations &
Individuals23
Shareholder Composition
39
Major Shareholders (as of June 30, 2017) Shareholdings by Shareholder Type
Shareholders by Shareholder Type
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
0
2,500
5,000
7,500
10,000
70,000
80,000
90,000
100,000
110,000
Share Price(December 1, 2016 to August 7, 2017)
40
TSE IPO on December 1, 2016 (Trade Volume, Shares)(JPY)
Ichigo Green Share Price(Left Axis)
TSE REIT Index(Left Axis)
Trade Volume(Right Axis)
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo Green Schedule
41
Dec Jan Feb Mar Apr May Jun
FY17/6(Dec 2016 - Jun 2017)
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY18/6(Jul 2017 - Jun 2018)
Jul Aug Sep
July to June fiscal year12-month fiscal period smooths significant seasonal variability in power generation and earnings that would occur in two 6-month fiscal periods
Jul Aug Sep
2016 2017
2017 2018
TSE IPO on December 1, 2016
Earnings Announcement
Dividend Payment
Earnings Announcement
Dividend Payment
Fiscal Year-End
Fiscal Year-End
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Ichigo Green
Name Ichigo Green Infrastructure Investment Corporation
Securities Code 9282
Location 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Executive Director Mami Nagasaki
Fiscal Year July 1 to June 30 (Half-Year is July 1 to December 31)
Note: FY17/6 ran from October 2016 to June 2017, and the power plants' actual operating period ran from December 2016 to June 2017.
Asset Management Company
Name Ichigo Investment Advisors Co., Ltd.
President Wataru Orii
Registration & MembershipFinancial Instruments Business Operator (Type II, Investment Advisory &Agency Services, and Investment Management Services)The Investment Trusts Association, Japan
Ichigo Green Overview
42
© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Green Infrastructure Investment Corporation All rights reserved.
Contact:Ichigo Green IR Desk (9282)TEL: +81-3-3502-4854 FAX:+81-3-3502-4835E-mail: [email protected]/en/
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking responsibility for our environmental footprint by offsetting our carbon emissions and investing in low-carbon technologies such as solar energy.
43
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,an offer to sell or buy securities of Ichigo Green Investment Corporation (Ichigo Green).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of Ichigo Green with respect to financial condition and future results. These statements are based on certain assumptions founded on currently available information. Accordingly, such statements are subjects to risks and uncertainties, and there is no assurance as to actual financial conditions or future results. Actual results may vary from those indicated in the forward-looking statements.
In creating these materials, Ichigo Green and Ichigo Investment Advisors Co., Ltd. (IIA) have sought to provide accurate information. However, there can be no assurance given as to the accuracy, certainty, validity or fairness of any such information. The content of these materials is also subject to revision or retraction without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.